Skip to main content

European Investment Bank Distributes $121 Million in Ethereum-based Digital Bonds

European Investment Bank Distributes $121 Million in Ethereum-based Digital Bonds

The European Investment Bank (EIB), the investment bank owned by the EU Member States, has announced the issuance of the organization’s first-ever digital bond built on a public blockchain. The bond was issued using Ethereum and the issuance invoked $121 million two-year bonds placed with key market investors.

EIB Issues Digital Bonds Built With Ethereum Technology

The EIB, a not-for-profit organization and lending arm of the European Union announced on Wednesday that the bank has issued a new type of digital bond built using blockchain technology.

On April 28, 2021, the EIB explained that the bank had also worked on the digital bond project with the financial institutions Goldman Sachs, Santander, and Societe Generale. The EIB also disclosed that the Banque de France participated and said “the payment of the issue monies from the underwriters to the EIB has been represented on the blockchain in the form of CBDC.”

“Innovation at the EIB goes beyond the projects we are supporting. As a global leader in the green and sustainability bond markets, the EIB is clearly well‑placed to lead the way now in the issuance of digital bonds on [a] blockchain,” EIB Vice President Mourinho Félix remarked during the announcement. “These digital bonds will play a role in giving the Bank a quicker and more streamlined access to alternative sources of finance to boost finance for projects across the globe.”

The EIB is considered one of the largest backers of green finance in the world. The financial institution thinks that the digitalization of capital markets will benefit market participants in the future. Benefits include the reduction of third-party costs, transparency, and “faster settlement speed.” A person familiar with the matter told Bloomberg that “the notes have a zero percent coupon and will be registered in the public Ethereum blockchain network after pricing.”

The EIB announcement further notes:

Similar to the EIB’s role in green bonds or risk-free rates, the new digital bond issuance may pave the way for market players to adopt blockchain technology for the issuance of financial securities.

Blockchain to Help the Bank’s Position in Capital Markets’ Innovation

The Director-General Finance at the EIB, Bertrand de Mazières, believes this is a milestone for the European lender and thinks it cements the bank’s “position in capital markets’ innovation.” The EIB Director thinks the steps taken by the bank will pioneer more blockchain innovation when it comes to issuing financial securities.

“By helping to create a framework for a new market ecosystem, the EIB believes this will bring value added for both issuers and investors, while contributing to an innovative, efficient and secure market infrastructure,” the EIB Director’s statement concluded.

What do you think about the European Investment Bank issuing blockchain bonds via Ethereum’s technology? Let us know what you think about this subject in the comments section below.



from Bitcoin News https://ift.tt/3u3Owyv
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...
10 comments
Read more

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli...
Post a Comment
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...
Post a Comment
Read more